UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM N-Q

 

 

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS

OF REGISTERED MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number 811-21338

 

 

AGIC Convertible & Income Fund II

(Exact name of registrant as specified in charter)

 

 

 

		1633 Broadway, New York, NY 10019
		(Address of principal executive offices) (Zip code)

 

 

Lawrence G. Altadonna

1633 Broadway,

New York, NY 10019

(Name and address of agent for service)

 

 

Registrant’s telephone number, including area code: 212-739-3371

Date of fiscal year end: February 28, 2013

Date of reporting period: November 30, 2012

 

 

 

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Item 1. Schedule of Investments

AGIC Convertible & Income Fund II Schedule of Investments

November 30, 2012 (unaudited)

 

 

Principal Amount (000s)						Value*
	CORPORATE BONDS & NOTES—45.0%
				Advertising—0.7%
$	6,335			Affinion Group, Inc., 11.50%, 10/15/15		$	5,163,025
				Airlines—0.6%
	4,750			United Airlines, Inc., 12.00%, 11/1/13 (a)(b)			4,827,187
				Auto Manufacturers—0.8%
	5,590			Chrysler Group LLC, 8.25%, 6/15/21			6,183,938
				Banks—0.6%
	4,300			Capital One Capital V, 10.25%, 8/15/39			4,343,000
				Building Products—0.3%
	2,400			Gibraltar Industries, Inc., 8.00%, 12/1/15			2,445,900
				Commercial Services—3.1%
	3,000			Avis Budget Car Rental LLC/Avis Budget Finance, Inc., 9.75%, 3/15/20			3,465,000
	8,535			Cenveo Corp., 11.50%, 5/15/17			7,094,719
	4,295			DynCorp International, Inc., 10.375%, 7/1/17			3,811,812
	8,250			National Money Mart Co., 10.375%, 12/15/16			9,178,125
							23,549,656
				Construction & Engineering—1.2%
	8,380			MasTec, Inc., 7.625%, 2/1/17			8,673,300
				Consumer Finance—0.5%
	4,110			Springleaf Finance Corp., 6.90%, 12/15/17			3,668,175
				Diversified Consumer Services—0.6%
	5,270			Cambium Learning Group, Inc., 9.75%, 2/15/17			4,242,350
				Diversified Financial Services—2.1%
				Community Choice Financial, Inc.,
	7,465			10.75%, 5/1/19			7,278,375
	5,370			12.75%, 5/1/20 (a)(b)			5,450,550
	3,005			International Lease Finance Corp., 6.375%, 3/25/13			3,050,075
							15,779,000
				Diversified Telecommunications—1.0%
	7,705			Cincinnati Bell, Inc., 8.75%, 3/15/18			7,820,575
				Electric—0.3%
	8,200			Texas Competitive Electric Holdings Co. LLC, 15.00%, 4/1/21			2,347,250
				Electrical Components & Equipment—1.5%
	10,275			WireCo WorldGroup, Inc., 9.50%, 5/15/17			10,891,500
				Electronic Equipment, Instruments & Components—0.8%
	5,815			Kemet Corp., 10.50%, 5/1/18			5,815,000
				Electronics—0.2%
	1,300			NXP BV/NXP Funding LLC, 9.75%, 8/1/18 (a)(b)			1,511,250
				Energy Equipment & Services—1.2%
	8,005			Pioneer Drilling Co., 9.875%, 3/15/18			8,705,438
				Health Care Providers & Services—0.9%
	6,585			ExamWorks Group, Inc., 9.00%, 7/15/19			7,013,025
				Hotels, Restaurants & Leisure—2.1%
	6,880			DineEquity, Inc., 9.50%, 10/30/18			7,817,400
	6,395			MGM Resorts International, 11.375%, 3/1/18			7,626,038
							15,443,438
				Household Durables—0.8%
	3,920			Beazer Homes USA, Inc., 9.125%, 5/15/19			4,076,800
	1,390			Jarden Corp., 7.50%, 5/1/17			1,572,437
							5,649,237
				Household Products/Wares—0.8%
	5,725			Reynolds Group Issuer, Inc., 9.875%, 8/15/19			6,097,125
				Internet Software & Services—1.0%
	6,840			Earthlink, Inc., 8.875%, 5/15/19			7,182,000
				Iron/Steel—0.6%
	5,600			AK Steel Corp., 8.375%, 4/1/22			4,648,000
				IT Services—0.3%
	1,985			Stream Global Services, Inc., 11.25%, 10/1/14			2,094,175
				Leisure Time—1.6%
				NCL Corp. Ltd.,
	810			9.50%, 11/15/18			898,087
	7,320			11.75%, 11/15/16			8,344,800
	8,145			Travelport LLC, 11.875%, 9/1/16			3,054,375
							12,297,262
				Lodging—0.9%
	9,455			Caesars Entertainment Operating Co., Inc., 12.75%, 4/15/18			6,902,150
				Machinery—0.1%
	1,000			Navistar International Corp., 8.25%, 11/1/21			960,000
				Media—1.5%
	5,025			McClatchy Co., 11.50%, 2/15/17			5,565,187
	5,100			Media General, Inc., 11.75%, 2/15/17			5,877,750
							11,442,937

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AGIC Convertible & Income Fund II Schedule of Investments

November 30, 2012 (unaudited) (continued)

 

 

Principal Amount (000s)						Value*
				Metals & Mining—0.4%
$	3,975			Thompson Creek Metals Co., Inc., 7.375%, 6/1/18		$	3,070,688
				Miscellaneous Manufacturing—0.9%
	7,715			Harland Clarke Holdings Corp., 9.50%, 5/15/15			6,904,925
				Oil & Gas—2.0%
	7,000			Energy XXI Gulf Coast, Inc., 9.25%, 12/15/17			7,927,500
	6,635			United Refining Co., 10.50%, 2/28/18			7,298,500
							15,226,000
				Oil, Gas & Consumable Fuels—2.2%
	4,300			Endeavour International Corp., 12.00%, 3/1/18 (a)(b)			4,687,000
	6,250			SandRidge Energy, Inc., 9.875%, 5/15/16			6,781,250
	4,740			Western Refining, Inc., 11.25%, 6/15/17 (a)(b)			5,225,850
							16,694,100
				Personal Products—0.1%
	500			Revlon Consumer Products Corp., 9.75%, 11/15/15			528,750
				Retail—1.6%
	9,165			Neiman Marcus Group, Inc., 10.375%, 10/15/15			9,382,760
	2,150			Toys “R” Us, Inc., 10.375%, 8/15/17			2,211,813
							11,594,573
				Semiconductors & Semiconductor Equipment—1.0%
				Freescale Semiconductor, Inc.,
	3,806			10.125%, 3/15/18 (a)(b)			4,148,540
	3,360			10.75%, 8/1/20			3,540,600
							7,689,140
				Software—1.3%
				First Data Corp.,
	6,905			9.875%, 9/24/15			7,094,887
	2,150			12.625%, 1/15/21			2,273,625
							9,368,512
				Specialty Retail—0.4%
	3,140			Brown Shoe Co., Inc., 7.125%, 5/15/19			3,265,600
				Telecommunications—3.9%
	5,580			Clearwire Communications LLC/Clearwire Finance, Inc., 12.00%, 12/1/15 (a)(b)			5,914,800
	4,335			Consolidated Communications Finance Co., 10.875%, 6/1/20 (a)(b)			4,681,800
	6,835			ITC Deltacom, Inc., 10.50%, 4/1/16			7,347,625
	3,860			NII Capital Corp., 8.875%, 12/15/19			2,779,200
	8,370			West Corp., 11.00%, 10/15/16			8,767,575
							29,491,000
				Textiles, Apparel & Luxury Goods—0.9%
	6000			Fifth & Pacific Co., Inc.,10.50%, 4/15/19 (a)(b)			6,675,000
				Trading Companies & Distribution—0.7%
	4,560			Aircastle Ltd., 9.75%, 8/1/18			5,175,600
				Transportation—1.9%
	6,675			Quality Distribution LLC, 9.875%, 11/1/18			7,242,375
	6,590			Swift Services Holdings, Inc., 10.00%, 11/15/18			7,281,950
							14,524,325
				Wireless Telecommunication Services—1.6%
	4,820			Crown Castle International Corp., 9.00%, 1/15/15			5,139,325
	5,295			Sprint Nextel Corp., 11.50%, 11/15/21			7,128,394
							12,267,719
				Total Corporate Bonds & Notes (cost-$338,260,473)			338,171,825
Shares
	CONVERTIBLE PREFERRED STOCK—28.1%
				Aerospace & Defense—0.7%
	94,165			United Technologies Corp., 7.50%, 8/1/15			5,152,709
				Airlines—1.1%
	239,795			Continental Airlines Finance Trust II, 6.00%, 11/14/30			8,063,107
				Auto Components—1.1%
	178,465			Goodyear Tire & Rubber Co., 5.875%, 3/31/14			8,020,217
				Automobiles—1.4%
	268,680			General Motors Co., 4.75%, 12/1/13, Ser. B			10,873,480
				Capital Markets—2.2%
	147,005			AMG Capital Trust I, 5.10%, 4/15/36			7,892,331
	257,250			The Goldman Sachs Group, Inc., 8.00%, 3/14/13 (NetApp, Inc.) (c)			8,868,951
							16,761,282
				Commercial Banks—2.2%
	61,835			Fifth Third Bancorp, 8.50%, 6/30/13, Ser. G (d)			8,591,200
	6,185			Wells Fargo & Co., 7.50%, 3/15/13, Ser. L (d)			7,644,660
							16,235,860

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AGIC Convertible & Income Fund II Schedule of Investments

November 30, 2012 (unaudited) (continued)

 

 

Shares						Value*
				Commercial Services & Supplies—0.8%
	117,675			United Rentals, Inc., 6.50%, 8/1/28		$	6,284,575
				Diversified Financial Services—2.3%
	11,515			Bank of America Corp., 7.25%, 1/30/13, Ser. L (d)			12,816,195
	47,655			Citigroup, Inc., 7.50%, 12/15/12			4,782,179
							17,598,374
				Electric Utilities—2.4%
				NextEra Energy, Inc.,
	149,575			5.599%, 6/1/15			7,777,900
	25,000			7.00%, 9/1/13			1,337,500
	158,835			PPL Corp., 9.50%, 7/1/13			8,561,206
							17,676,606
				Health Care Providers & Services—1.2%
	8,660			HealthSouth Corp., 6.50%, 12/31/49, Ser. A (d)			9,062,690
				Insurance—0.7%
	124,900			MetLife, Inc., 5.00%, 9/4/13			5,569,291
				IT Services—0.9%
	127,940			Unisys Corp., 6.25%, 3/1/14			6,819,202
				Machinery—0.6%
	35,325			Stanley Black & Decker, Inc., 4.75%, 11/17/15			4,259,842
				Metals & Mining—0.3%
	125,000			Thompson Creek Metals Co., Inc., 6.50%, 5/12/15			2,037,500
				Multi-Utilities—1.2%
	186,560			AES Trust III, 6.75%, 10/15/29			9,309,344
				Oil, Gas & Consumable Fuels—2.4%
	168,300			Apache Corp., 6.00%, 8/1/13			7,477,569
	93,350			Chesapeake Energy Corp., 5.00%, 12/31/49 (d)			6,989,581
	94,905			PetroQuest Energy, Inc., 6.875%, 12/31/49 (d)			3,176,357
							17,643,507
				Professional Services—0.9%
	130,210			Nielsen Holdings NV, 6.25%, 2/1/13			6,905,192
				Real Estate Investment Trust—4.1%
	335,200			Alexandria Real Estate Equities, Inc., 7.00%, 4/20/13 (d)			8,866,040
	539,470			FelCor Lodging Trust, Inc., 1.95%, 12/31/49, Ser. A (d)			12,893,333
	159,235			Health Care REIT, Inc., 6.50%, 4/20/18, Ser. I (d)			8,949,007
							30,708,380
				Road & Rail—1.6%
	1,368,260			2010 Swift Mandatory Common Exchange Security Trust, 6.00%, 12/31/13 (b)			12,119,363
				Total Convertible Preferred Stock (cost-$205,976,483)			211,100,521
Principal Amount (000s)
	CONVERTIBLE BONDS & NOTES—24.5%
				Aerospace & Defense—1.2%
$	7,110			GenCorp, Inc., 4.063%, 12/31/39			8,763,075
				Biotechnology—0.2%
	865			Cubist Pharmaceuticals, Inc., 2.50%, 11/1/17			1,321,288
				Capital Markets—2.4%
	8,165			Ares Capital Corp., 5.75%, 2/1/16			8,813,097
	10,075			BGC Partners, Inc., 4.50%, 7/15/16			9,180,844
							17,993,941
				Coal—0.8%
	6,430			Alpha Appalachia Holdings, Inc., 3.25%, 8/1/15			6,112,519
				Commercial Services—1.0%
	8,405			Cenveo Corp., 7.00%, 5/15/17 (a)(b)			7,517,222
				Construction Materials—0.8%
	5,850			Cemex SAB de CV, 4.875%, 3/15/15			6,025,500
				Diversified Telecommunication Services—1.0%
	6,925			Level 3 Communications, Inc., 15.00%, 1/15/13			7,227,969
				Electrical Equipment—1.0%
	6,970			EnerSys, 3.375%, 6/1/38 (e)			7,902,237
				Electronic Equipment, Instruments & Components—0.7%
	4,755			Anixter International, Inc., 1.00%, 2/15/13			5,254,275
				Health Care Equipment & Supplies—0.5%
	4,595			NuVasive, Inc., 2.75%, 7/1/17			3,943,084
				Hotels, Restaurants & Leisure—2.1%
	6,935			MGM Resorts International, 4.25%, 4/15/15			7,078,034
	9,175			Morgans Hotel Group Co., 2.375%, 10/15/14			8,486,875
							15,564,909

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AGIC Convertible & Income Fund II Schedule of Investments

November 30, 2012 (unaudited) (continued)

 

 

Principal Amount (000s)						Value*
				Household Durables—0.1%
$	335			Ryland Group, Inc., 1.625%, 5/15/18		$	432,569
				Iron/Steel—0.1%
	435			AK Steel Corp., 5.00%, 11/15/19			449,138
				IT Services—1.1%
	4,745			Alliance Data Systems Corp., 1.75%, 8/1/13			8,641,831
				Machinery—3.9%
	8,790			Greenbrier Cos, Inc., 3.50%, 4/1/18			8,394,450
				Meritor, Inc.,
	9,545			4.625%, 3/1/26 (e)			9,043,887
	4,325			7.875%, 3/1/26 (a)(b)			3,920,180
	8,665			Navistar International Corp., 3.00%, 10/15/14			7,971,800
							29,330,317
				Marine—0.4%
	3,655			DryShips, Inc., 5.00%, 12/1/14			2,857,753
				Media—1.2%
	6,420			Liberty Interactive LLC, 3.125%, 3/30/23			9,244,800
				Oil, Gas & Consumable Fuels—1.8%
	435			Alpha Natural Resources, Inc., 2.375%, 4/15/15			392,043
	6,050			Endeavour International Corp., 5.50%, 7/15/16			5,263,500
	2,815			PDC Energy, Inc., 3.25%, 5/15/16 (a)(b)			3,156,319
	5,040			Peabody Energy Corp., 4.75%, 12/15/41			4,608,450
							13,420,312
				Pharmaceuticals—0.2%
	1,000			Akorn, Inc., 3.50%, 6/1/16			1,691,250
				Real Estate Investment Trust—0.7%
	4,550			Boston Properties LP, 3.75%, 5/15/36			4,939,594
				Semiconductors & Semiconductor Equipment—0.9%
	7,550			SunPower Corp., 4.75%, 4/15/14			7,153,625
				Software—1.6%
	4,835			Nuance Communications, Inc., 2.75%, 8/15/27			6,442,637
	5,720			TeleCommunication Systems, Inc., 4.50%, 11/1/14 (a)(b)			5,376,800
							11,819,437
				Tobacco—0.7%
	4,550			Vector Group Ltd., 2.50%, 1/15/19 (f)			4,965,188
				Trading Companies & Distributors—0.1%
	1,150			Titan Machinery, Inc., 3.75%, 5/1/19 (a)(b)			1,050,094
				Total Convertible Bonds & Notes (cost-$164,864,271)			183,621,927
	SHORT-TERM INVESTMENT—2.4%
				Time Deposit—2.4%
	17,704			The Bank of New York Mellon Corp.-Grand Cayman, 0.03%, 12/3/12 (cost-$17,703,907)			17,703,907
				Total Investments (cost-$726,805,134) (g)—100.0%		$	750,598,180

Notes to Schedule of Investments:

* Portfolio securities and other financial instruments for which market quotations are readily available are stated at market value. Market value is generally determined on the basis of last reported sales prices, or if no sales are reported, on the basis of quotes obtained from a quotation reporting system, established market makers, or independent pricing services. The Fund’s investments are valued daily using prices supplied by an independent pricing service or dealer quotations, or by using the last sale price on the exchange that is the primary market for such securities, or the mean between the last quoted bid and ask price. Independent pricing services use information provided by market makers or estimates of market values obtained from yield data relating to investments or securities with similar characteristics.

The Board of Trustees (the “Board”) has adopted procedures for valuing portfolio securities and other financial derivative instruments in circumstances where market quotes are not readily available, and has delegated the responsibility for applying the valuation method to the Investment Manager and Allianz Global Investors Capital LLC (“AGIC”) (the “Sub-Adviser”), an affiliate of the Investment Manager. The Fund’s Valuation Committee was established to oversee the implementation of the Fund’s valuation methods and to make fair value determinations on behalf of the Board, as instructed. The Sub-Adviser monitors the continual appropriateness of methods applied and determines if adjustments should be made in light of market changes, events affecting the issuer, or other factors. If the Sub-Adviser determines that a valuation method may no longer be approprirate, another valuation method may be selected, or the Valuation Committee will be convened to consider the matter and take any appropriate action in accordance with procedures set forth by the Board. The Board shall review the appropriateness of the valuation methods and these methods may be amended or supplemented from time to time by the Valuation Committee.

Synthetic convertible securities are valued based on quotations obtained from unaffiliated brokers who are the principal market-makers in such securities. Such valuations are derived by the brokers from proprietary models which are generally based on readily available market information including valuations of the common stock underlying the synthetic security.

Short-term securities maturing in 60 days or less are valued at amortized cost, if their original term to maturity was 60 days or less, or by amortizing their value on the 61st day prior to maturity, if the original term to maturity exceeded 60 days.

The prices used by the Fund to value securities may differ from the value that would be realized if the securities were sold, and these differences could be material. The Fund’s net asset value (“NAV”) is normally determined as of the close of regular trading (normally, 4:00 p.m. Eastern time) on the New York Stock Exchange (“NYSE”) on each day the NYSE is open for business.

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(a)	Private Placement—Restricted as to resale and may not have a readily available market. Securities with an aggregate market value of $64,142,592, representing 8.5% of total investments.

 

(b)	144A—Exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, typically only to qualified institutional buyers. Unless otherwise indicated, these securities are not considered to be illiquid.

 

(c)	Securities exchangeable or convertible into securities of an entity different than the issuer or structured by the issuer to provide exposure to securities of an entity different than the issuer (synthetic convertible securities). Such entity is identified in the parenthetical.

 

(d)	Perpetual maturity. The date shown is the next call date.

 

(e)	Step Bond—Coupon is a fixed rate for an initial period then resets at a specific date and rate.

 

(f)	In addition to the coupon rate shown, the issuer is expected to pay additional interest based on the actual dividends paid on its common stock.

 

(g)

At November 30, 2012, the cost basis of portfolio securities for federal income tax purposes was $728,740,600. Gross unrealized appreciation was $62,860,502, gross unrealized depreciation was $41,002,922 and net unrealized appreciation was $21,857,580. The difference between book and tax cost basis was attributable to the differing treatmenht of bond premium amortization and wash sale loss deferrals.

Fair Value Measurements

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e. the “exit price”) in an orderly transaction between market participants. The three levels of the fair value hierarchy are described below:

 

•

Level 1 – quoted prices in active markets for identical investments that the Fund has the ability to access

 

•

Level 2 – valuations based on other significant observable inputs, which may include, but are not limited to, quoted prices for similar assets or liabilities, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates or other market corroborated inputs.

 

•

Level 3 – valuations based on significant unobservable inputs (including the Sub-Adviser’s or Valuation Committees’s own assumptions and single broker quotes in determining the fair value of investments)

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The following are certain inputs and techniques that the Fund generally uses to evaluate how to classify each major category of assets and liabilities for Level 2 and Level 3, in accordance with Generally Accepted Accounting Principles.

Equity Securities (Common and Preferred Stock)—Equity securities traded in inactive markets are valued using inputs

which include broker-dealer quotes, recently executed transactions adjusted for changes in the benchmark index, or

evaluated price quotes received from independent pricing services that take into account the integrity of the market sector and issuer, the individual characteristics of the security, and information received from broker-dealers and other market sources pertaining to the issuer or security. To the extent that these inputs are observable, the values of equity securities are categorized as Level 2. To the extent that these inputs are unobservable the values are categorized as Level 3.

Convertible Bonds & Notes—Convertible bonds & notes are valued by independent pricing services using various inputs and techniques, which include broker-dealer quotations from relevant market makers and recently executed transactions in securities of the issuer or comparable issuers. The broker-dealer quotations received are supported by credit analysis of the issuer that takes into consideration credit quality assessments, daily trading activity, and the activity of the underlying equities, listed bonds and sector-specific trends. To the extent that these inputs are observable, the values of convertible bonds and notes are categorized as Level 2. To the extent that these inputs are unobservable the values are categorized as Level 3.

Corporate Bonds & Notes—Corporate bonds & notes are generally comprised of two main categories: investment grade bonds and high yield bonds. Investment grade bonds are valued by independent pricing services using various inputs and techniques, which include broker-dealer quotations, live trading levels, recently executed transactions in securities of the issuer or comparable issuers, and option adjusted spread models that include base curve and spread curve inputs. Adjustments to individual bonds can be applied to recognize trading differences compared to other bonds issued by the same issuer. High yield bonds are valued by independent pricing services based primarily on broker-dealer quotations from relevant market makers and recently executed transactions in securities of the issuer or comparable issuers. The broker-dealer quotations received are supported by credit analysis of the issuer that takes into consideration credit quality assessments, daily trading activity, and the activity of the underlying equities, listed bonds and sector-specific trends. To the extent that these inputs are observable, the values of corporate bonds & notes are categorized

as Level 2. To the extent that these inputs are unobservable the values are categorized as Level 3.

The valuation techiniques used by the Fund to measure fair value during the nine months ended November 30, 2012 were intended to maximize the use of observable inputs and minimize the use of unobservable inputs.

The Fund’s policy is to recognize transfers between levels at the end of the reporting period. An investment asset’s or liability’s level within the fair value hierarchy is based on the lowest level input, individually or in aggregate, that is significant to fair value measurement. The objective of fair value measurement remains the same even when there is a significant decrease in the volume and level of activity for an asset or liability and regardless of the valuation techniques used. Assets categorized as Level 1 or 2 as of period end may have been transferred between Levels 1 and 2 since the prior period due to changes in the valuation method utilized in valuing the investments.

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A summary of the inputs used at November 30, 2012 in valuing the Fund’s assets and liabilities is listed below (refer to the

Schedule of Investments for more detailed information on Investments in Securities):

 

		Level 1 - Quoted Prices				Level 2 - Other Significant Observable Inputs				Level 3 - Significant Unobservable Inputs				Value at 11/30/2012
Investments in Securities - Assets
Corporate Bonds & Notes			—			$	338,171,825				—			$	338,171,825
Convertible Preferred Stock:
Airlines			—				8,063,107				—				8,063,107
Capital Markets			—				7,892,331			$	8,868,951				16,761,282
Commercial Banks		$	7,644,660				8,591,200				—				16,235,860
Commercial Services & Supplies			—				6,284,575				—				6,284,575
Health Care Providers & Services			—				9,062,690				—				9,062,690
Oil, Gas & Consumable Fuels			7,477,569				10,165,938				—				17,643,507
Professional Services			—				6,905,192				—				6,905,192
Road & Rail			—				12,119,363				—				12,119,363
All Other			118,024,945				—				—				118,024,945
Convertible Bonds & Notes			—				183,621,927				—				183,621,927
Short-Term Investment			—				17,703,907				—				17,703,907
Totals		$	133,147,174			$	608,582,055			$	8,868,951			$	750,598,180

At November 30, 2012, there were no transfers between Levels 1 and 2.

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A roll forward of fair value measurements using significant unobservable inputs (Level 3) for the nine months ended November 30, 2012, was as follows:

 

		Beginning Balance 2/29/12				Purchases				Sales				Accrued Discounts (Premiums)				Net Realized Gain (Loss)				Net Change in Unrealized Appreciation/ Depreciation				Transfers into Level 3				Transfers out of Level 3				Ending Balance 11/30/12
Investments in Securities - Assets
Convertible Preferred Stock:
Capital Markets		$	7,599,611			$	10,817,501			$	(7,554,356	)			—			$	(1,095,256	)		$	(898,549	)			—				—			$	8,868,951

The net change in unrealized appreciation/depreciation of Level 3 investments which the fund held at November 30, 2012 was $(1,948,550).

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Item 2. Controls and Procedures

(a) The registrant’s President & Chief Executive Officer and Treasurer, Principal Financial & Accounting Officer have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Act (17 CFR 270.30a-3(c))) are effective based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this document.

(b) There were no significant changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Act (17CFR 270.30a-3(d))) that occurred during the registrant’s last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting

Item 3. Exhibits

(a) Exhibit 99.302 Cert. — Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Registrant: AGIC Convertible & Income Fund II

 

By		/s/ Brian S. Shlissel
President & Chief Executive Officer
Date: January 25, 2013
By		/s/ Lawrence G. Altadonna
Treasurer, Principal Financial & Accounting Officer
Date: January 25, 2013

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

By		/s/ Brian S. Shlissel
President & Chief Executive Officer
Date: January 25, 2013
By		/s/ Lawrence G. Altadonna
Treasurer, Principal Financial & Accounting Officer
Date: January 25, 2013